Q.Write short notes on the following:
Legal provisions regarding unclaimed / unpaid dividend

Unclaimed dividend goes first to an 'Unpaid Dividend Account', and if still unclaimed for 7 years, it (with the related shares) is transferred to the IEPF.

The Companies Act, 2013 lays down clear provisions to protect shareholders' money when a dividend is declared but not collected:

• Payment within 30 days: Once a dividend is declared, it must be paid within 30 days. If a shareholder does not claim or encash it within this time, the amount becomes unpaid/unclaimed dividend.
• Transfer to Unpaid Dividend Account: Within 7 days after the 30-day period ends, the company must transfer the total unpaid or unclaimed dividend to a special account called the 'Unpaid Dividend Account', opened in a scheduled bank.
• Interest on default: If the company delays transferring this amount, it must pay interest at 12% per annum, which goes to the benefit of the members.
• Statement of unpaid dividend: The company must place on its website (and the IEPF website) a statement of the names, addresses and amounts of the unpaid dividend, so that members can claim it.
• Claim within 7 years: A shareholder can claim the unpaid dividend from this account at any time within 7 years. …